Use the following to answer question:
-(Table: Pumpkin Market)There are two consumers,Andy and Ben,in the market for pumpkins.Their willingness to pay for each pumpkin is shown in the table Pumpkin Market.There are two producers of pumpkins,Cindy and Diane,and their costs are also shown.The equilibrium price for pumpkins is $8 and the equilibrium quantity is 5.At the equilibrium price and quantity,Ben buys _____ pumpkins,and his consumer surplus is _____.
A)four;$2
B)three;$6
C)two;$4
D)one;$3

Question

Use the following to answer question: 
-(Table: Pumpkin Market)There are two consumers,Andy and Ben,in the market for pumpkins.Their willingness to pay for each pumpkin is shown in the table Pumpkin Market.There are two producers of pumpkins,Cindy and Diane,and their costs are also shown.The equilibrium price for pumpkins is $8 and the equilibrium quantity is 5.At the equilibrium price and quantity,Ben buys _____ pumpkins,and his consumer surplus is _____.
A)four;$2 
B)three;$6 
C)two;$4 
D)one;$3

Quizplus · Accepted Answer

At the equilibrium price of $8, Ben's willingness to pay for the first pumpkin is $10, the second is $8, the third is $6, the fourth is $4, and the fifth is $2. Thus, Ben buys two pumpkins, at a total cost of $16. His consumer surplus is the difference between his total willingness to pay ($28) and his total cost ($16), which is $12. Dividing this by the number of pumpkins he buys gives an average consumer surplus of $6 per pumpkin. Therefore, the correct answer is C) two pumpkins and a consumer surplus of $4.

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